DTN’s Technical Analysis | ENERGY | DEC 18

Brian Milne - DTN Energy Editor,
December 18, 2018

Brent Crude Oil: The overnight market on ICE was down $1.50 near $58.10, trading at a $57.20 14-month low. The spot-month contract has support at the $56.92 50% retracement point for the 2016-to-2018 uptrend. The forward curve is in a contango market structure through October 2019 delivery. The relative strength index shows a neutral market.

Crude Oil :The overnight WTI market was down $1.40 near $48.45, trading at a $47.84 15-month low. The spot-month contract has support at the $45.47 61.8% retracement point for the 2016-to-2018 uptrend. The forward curve deepened its contango market structure, with WTI in contango through May 2020 delivery. The relative strength index shows a neutral market.

Distillates: The overnight market was down 3.35cts near $1.7930, trading at a $1.7715 14-month low. The spot-month contract is testing support at the $1.7727 61.8% resistance point for the 2017-to-2018 uptrend. Support is again marked at $1.7348 and $1.6859, the 23.6% and 38.2% Fibonacci extension points for the January-to-February selloff. The forward curve is in seasonal backwardation. The relative strength index shows modest oversold pressure.

RBOB Gasoline: The overnight market was down 3.25cts near $1.3780, trading at a $1.3587 better than two-year low. The spot-month contract moved below support at the $1.3838 61.8% retracement point for the 2016-to-2017 uptrend. The forward curve is in a contango market structure through the first half of 2019. The relative strength index shows a neutral market.

Natural Gas: The overnight market up 11.1cts at $3.639. The spot-month contract is consolidating within Monday’s trade range after gapping down from Friday’s $3.787 low to an intraday high of $3.742. The spot-month contract is in a short-term downtrend, breaking below support at the $3.729 50% retracement point for the 2018 uptrend with a $3.516 six-week low. Support is now found at the $3.446 61.8% retracement point. The forward curve is in seasonal backwardation through May delivery. The relative strength index shows a neutral market.